Friday, 20 May 2022 08:17

JPMorgan Warns $6 Gas Contagion

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California saw its gas prices spike to $6 a gallon, but the Golden state might not be the only one feeling the pressure at the pump. JPMorgan’s global oil and commodities research head warned that there is a risk of national $6+ gasoline. The increase in prices is in no doubt a reflection of the ongoing Russia-Ukraine war, but also US inventories are at the lowest levels in over three years. States like Kansas, Oklahoma, and Georgia with extremely low gas prices have breached the $4 threshold and it could get worse. Inventories are especially bad on the East Coast where they are at decade lows. Other forecasters are predicting many American particularly those with access to public transit will drive less if gas prices continue to creep up and aren’t forecasting $6 prices.


Finsum: This is an opportunity to look to commodities but particularly oil & gas companies' debt as a fixed income option, these prices will make paying back relatively easy.

Read 1140 times Last modified on Friday, 20 May 2022 08:19

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